In cooperation with the U.S. Department of State, DSCA announced a $302 million Foreign Military Financing (FMF) direct loan agreement with the Republic of Albania.
Albania is a steadfast U.S. partner, NATO ally, and a founding member of the Board of Peace. The FMF direct loan agreement provides low-cost and flexible financing to advance Albania’s modernization of its defense forces and boost its contributions to allied security, in support of The Hague pledge and NATO 3.0.
The FMF direct loan program strengthens U.S. national security by enabling key allies and partners to invest in defense articles and services produced by the U.S. defense industrial base. These deals promote peace through strength and ensure ally and partner acquisitions meet the highest standards of capability and interoperability.
The FMF direct loan program is a State Department-led Title 22 program executed by DSCA. It directly delivers on the President’s Executive Order 14268 on Reforming Foreign Defense Sales to Improve Speed and Accountability by “improving financing options for allies and partners.” It also aligns with the America First Arms Transfer Strategy to strengthen the U.S. defense industrial base and ensure America has the capacity to support “our allies and partners,” while prioritizing allies and partners that invest in their own self-defense.
This announcement reaffirms the United States’ commitment to strong bilateral alliances and partnerships based on mutual respect, shared investment, and strategic priorities. The United States and Albania’s ongoing cooperation are securing the future of NATO, deterring aggression, and standing firm for freedom, sovereignty, and peace in Europe.